Applying for a job and I need help with W-4 forms

[MyHeartWillGoOn93 8]

I have been a permanent resident since May 2014 and I've finally got a job. I have to fill out a W-4 form for this job. It is asking me for my marital status, how many allowances I am claiming, if I am claiming exemption etc. I am married with no kids so do I tick the "married" box or the "married, but withold at higher single rate" box? What about number of allowances and the next part? I don't know if I am exempt or not. I know nothing about taxes lol and the instructions don't tell me if I am exempt or not.

I will post a screen cap of it so you can understand me better.

By the way, when I get this job, my husband will have the highest income out of the two of us, so does that mean I only file for myself? So I only write "1" where it says number of allowances?

Edited July 31, 2014 by MyHeartWillGoOn93

[Harpa Timsah 13,258]

There is no right or wrong way to do this. This will set your withholdings for the year for your job, but once you file taxes everything will be double checked, and if you paid too little, you will pay more, and if you paid too much, then you will get a refund.

You can look only for some advice about a two-income household. I think the general advice is that one or both spouses should reduce the amount of exemptions so that you don't pay too little and owe at the end of the year. That would make it two for you, instead of 3, if you did this. One for you, zero for spouse, and one other since no one can claim you as a dependent. This could still end up with not enough payment, though, depending on your income. You could put zero exemptions, but that also essentially gives the gov a one year loan of your money.

Good luck.

Edited July 31, 2014 by Harpa Timsah

[MyHeartWillGoOn93 8]

There is no right or wrong way to do this. This will set your withholdings for the year for your job, but once you file taxes everything will be double checked, and if you paid too little, you will pay more, and if you paid too much, then you will get a refund.

You can look only for some advice about a two-income household. I think the general advice is that one or both spouses should reduce the amount of exemptions so that you don't pay too little and owe at the end of the year. That would make it two for you, instead of 3, if you did this. One for you, zero for spouse, and one other since no one can claim you as a dependent. This could still end up with not enough payment, though, depending on your income. You could put zero exemptions, but that also essentially gives the gov a one year loan of your money.

Good luck.

Ohhh, I see, thank you. I think I will put "1". And I take it I am non-exempt so I don't tick any boxes on line 7 of that picture?

[Harpa Timsah 13,258]

That's right, nothing on line 7. This electronic form is different from the paper form, but the "main" person is worth 2 exemptions, one for being a person, and one for not being able to be claimed as a dependent on someone else's tax return. Then a spouse would be a 3rd. If you want to reduce it, then you should check that box that says "married, but withhold at higher single rate." That means they won't give your spouse an exemption. Not sure where the dependent question is on this electronic form. Good luck.

Congrats on the job, too, btw

Edited July 31, 2014 by Harpa Timsah

[MyHeartWillGoOn93 8]

That's right, nothing on line 7. This electronic form is different from the paper form, but the "main" person is worth 2 exemptions, one for being a person, and one for not being able to be claimed as a dependent on someone else's tax return. Then a spouse would be a 3rd. If you want to reduce it, then you should check that box that says "married, but withhold at higher single rate." That means they won't give your spouse an exemption. Not sure where the dependent question is on this electronic form. Good luck.

Congrats on the job, too, btw

Thanks, Harpa! You are an extremely helpful person on this website

[ryna 132]

I have been a permanent resident since May 2014 and I've finally got a job. I have to fill out a W-4 form for this job. It is asking me for my marital status, how many allowances I am claiming, if I am claiming exemption etc. I am married with no kids so do I tick the "married" box or the "married, but withold at higher single rate" box? What about number of allowances and the next part? I don't know if I am exempt or not. I know nothing about taxes lol and the instructions don't tell me if I am exempt or not.

I will post a screen cap of it so you can understand me better.

By the way, when I get this job, my husband will have the highest income out of the two of us, so does that mean I only file for myself? So I only write "1" where it says number of allowances?

It's a lot to wade through but here's a link to the official IRS instructions:

http://www.irs.gov/publications/p505/ch01.html#en_US_2014_publink1000194425

A lot of the decision will depend on whether one or both of you work, whether either of you have a second job and other tax deductions available (e.g., you have a house with a substantial mortgage interest deduction) that would lower your overall tax liability and therefore, give you the option to increase your # of exemptions/decrease the witholding amount without risking a (large) underpayment. Take a look at the info in the link.

Also, I just saw this.... It's a withholding calculator app from the IRS. I have no idea if it will cover your situation but it's worth a look...

http://apps.irs.gov/app/withholdingcalculator/

[Nich-Nick 3,354]

The W-4 form is totally an estimate for your employer to hold out some money toward your taxes. It varies depending on your family income. The higher your number, the more money in your check and less for taxes. A zero would mean more tax held out and a smaller pay check. Like Harpa said, it is all sorted officially when you file a tax return. If you find it is too much or too little held out when you finally do a tax return, then you fill out another W4 and give to your employer.

Sometimes it takes that first year to work out a balance. It you ended up with owing $2500 in additional taxes, you would likely want a bit more held out along the way. So do another w-4 with a smaller number. If you get a huge refund, you might want a bit more in your paycheck each month. Increase your number on a new W-4 (up to what is allowed).

When I had a piddly part time job and a husband with a high salary, I always had zero on my W-4. Both incomes together makes your tax bracket. Your w-4 withholdings only considers your salary. So a $15,000 income has tax taken out at a lower tax rate as if that was your only income. But if your spouse made $100,000 then you are already in an income tax bracket (together) for $115,000. What was calculated for your $15,000 using the W4 is going to be too little to cover your taxes if the combined incomes bumps you together into a new bracket.

Bottom line is pick something and change it next year to tweak it if needed.

[MyHeartWillGoOn93 8]

The W-4 form is totally an estimate for your employer to hold out some money toward your taxes. It varies depending on your family income. The higher your number, the more money in your check and less for taxes. A zero would mean more tax held out and a smaller pay check. Like Harpa said, it is all sorted officially when you file a tax return. If you find it is too much or too little held out when you finally do a tax return, then you fill out another W4 and give to your employer.

Sometimes it takes that first year to work out a balance. It you ended up with owing $2500 in additional taxes, you would likely want a bit more held out along the way. So do another w-4 with a smaller number. If you get a huge refund, you might want a bit more in your paycheck each month. Increase your number on a new W-4 (up to what is allowed).

When I had a piddly part time job and a husband with a high salary, I always had zero on my W-4. Both incomes together makes your tax bracket. Your w-4 withholdings only considers your salary. So a $15,000 income has tax taken out at a lower tax rate as if that was your only income. But if your spouse made $100,000 then you are already in an income tax bracket (together) for $115,000. What was calculated for your $15,000 using the W4 is going to be too little to cover your taxes if the combined incomes bumps you together into a new bracket.

Bottom line is pick something and change it next year to tweak it if needed.

Thanks I put "1" as I want to save up my money. My husband pays an accountant every year to do his taxes so we'll find out then. I chose "married but filing separately" because I don't think I can file jointly just yet but maybe later on, we will. Is it better to file jointly?

[Nich-Nick 3,354]

Thanks I put "1" as I want to save up my money. My husband pays an accountant every year to do his taxes so we'll find out then. I chose "married but filing separately" because I don't think I can file jointly just yet but maybe later on, we will. Is it better to file jointly?

Married Filing Separately will hold out a little more I would think. We are not talking huge differences. You are not bound by anything you put on the W-4 when you actually file taxes. It is a tool, not a tax return.

Yes, you can file jointly for 2014 taxes and it will almost always be the better deal, even though your 2014 UK income will be reported. You could file jointly if you still lived in the UK. It is a little more involved and another topic. Ask next year before he goes to the accountant just so you can check that he knows about the international aspect of the tax laws. He probably doesn't get many.

Edit: The benefit will not be so much your personal filing joint vs married separate taxes. It will be the hit you husband takes on his income when he also would file married-separate if you did. I assume he will have a larger 2014 US income than you.

Edit again: Before you freak out, your UK income will be "reported" does not mean it will be "taxed". You get a foreign income exclusion.

Edited July 31, 2014 by Nich-Nick

[CowBoE 429]

Good advices given above. Don't sweat too much over it.

Usually it doesn't make a huge difference in pay and tax.

And if you got paid more, then you have the money to pay little more tax later.

If you paid more tax, then you'll get back the overpaid amount.

So in the end, it's zero sum game, and things balance out.

Also, you can go to your HR department, and make adjustments later.